The cabinet on Monday approved in principle the draft of the 'Bangladesh House Building Finance Corporation Bill 2019' making punishment for providing false statement harsher while taking loan from the corporation, reports UNB.
The approval came from the cabinet meeting held with prime minister Sheikh Hasina in the chair at her office.
Cabinet secretary Mohammad Shafiul Alam briefed reporters at the secretariat after the meeting.
"The punishment for providing false statements deliberately to take loan from the corporation has been proposed for a five-year jail term or Tk 500,000 fine or both raising that from a two-year jail term or Tk 2,000 fine or both," he said.
If anyone uses the name of the corporation in any advertisement or prospectus without any written permission, he or she will be sentenced to six months' jail or be fined with Tk 50,000 or both.
The punishment was six months' jail or only Tk 1,000 fine in the existing Bangladesh House Building Finance Corporation Order 1973, he said.
In the draft bill, some words, including 'loan default', 'chairman of the corporation', and 'director' have been incorporated, said the cabinet secretary.
A superseding clause has been inserted in the bill to give it priority over other laws, he said.
Shafiul Alam said the authorised capital for the corporation has been raised to Tk 10 billion (1,000 crore) from the existing Tk 1.10 billion (Tk 110 crore), while the paidup capital to Tk 5 billion (Tk 500 crore) from the exiting Tk 1.10 billion (Tk 110 crore).